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Court dismisses CBN, AGF’s objection to suit challenging Osun withheld LG funds

Robert Imoh by Robert Imoh
October 17, 2025
in News
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Court dismisses CBN, AGF’s objection to suit challenging Osun withheld LG funds
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The Federal High Court in Abuja, on Thursday, dismissed the objection raised by the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) against a suit challenging the Osun local government’s withheld funds.

The suit filed by the Attorneys-General (AG) of Osun seeks to stop the Federal Government from releasing withheld local government allocations to sacked officials elected during former Gov. Adegboyega Oyetola’s tenure.

Justice Emeka Nwite, in a ruling, held that the state’s Attorneys-General had locus standi (legal right) to file the suit on behalf of the local government authorities.

Justice Nwite dismissed the application brought by the defendants seeking the dismissal of the case on the ground that the Osun AG lacked locus standing to sue on behalf of the local governments.

The judge held that, the plaintiff, as the chief law officer of the state, had the duty and authority to act in the public interest, including protecting local government allocations.

The judge further held that the ongoing suit challenging local government allocations “does not constitute an abuse of court process.”

He observed that while parallel proceedings “may lead to unnecessary and duplicative objectives and judicial resources,” there was no evidence that the plaintiff had “misused, perverted, or abused the expression of justice.”

He emphasised that the plaintiff did not act in “a biased or deliberate manner in seeking the present action.”

On the transfer of case from the Osogbo judicial division of the court to Abuja division by the chief judge, Justice Nwite held that the CJ had the discretionary power to do so.

The judge dismissed the motion filed by the state government calling for the return of the case to the Osogbo division.

He said he had carefully considered the positions of both parties and came to the conclusion that Section 21(1) of the FHC Act provides that a Chief Judge of the court may, “at any time or stage of the proceedings before final judgment, either on the application of any of the parties to transfer any cause or matter before him to any other judge of the court.”

He held that the application challenging the transfer of the case from the Osogbo division to the Abuja division lacked merit “and is hereby dismissed.”

On the allegation of bias, the judge held that the accusation was wholly unfounded and speculative.

According to him, the word “bias” denotes a disposition or inclination of the mind that prevents a judge from making an objective determination based solely on the law and evidence.

“A mere administrative act by the Chief Judge transferring a case cannot, by any stretch, amount to bias.

“The plaintiff has not produced any credible evidence to support such a grave allegation,” the judge ruled.

Justice Nwite subsequently adjourned the matter until Oct. 17 for continuation of hearing.

Freedomonline  reports that the state’s AG had sued the CBN, the AGF and the Attorney-General of the Federation in the case.

Judge Nwite however dropped the name of the Attorney-General of the Federation from the suit, on Sept. 22, after the plaintiff discontinued the case against him, as a similar suit was already before the Supreme Court.

The same day, Osun Government, through its lawyer, Musibau Adetumbi, SAN, had filed a motion seeking the transfer of the case to the Osogbo division.

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